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Detroit Pension Boards Challenge EFM Law

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WWJ Photo/Vickie Thomas

WWJ Photo/Vickie Thomas

DETROIT (WWJ) – Detroit’s two pension boards believe the state’s new Emergency Financial Manager Law is unconstitutional and they are challenging it.

The 30-page lawsuit was filed Monday in U.S. District Court in Detroit.

The city claims the new law gives Emergency Financial Managers “czar-like powers” and would wipe out collective bargaining rights of city employees worried about their pensions.

A spokesman for Governor Rick Snyder said the Governor believes in the constitutionality of the law otherwise he would not have signed it.

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